Leonsis and the Wizards

[mit0313]

Thought I'd get a thread going with the news today that the Pollin estate is trying to prolong the sale process of their share of the Wizards/Verizon Center/Local Ticketmaster Franchise. I am sure there are lawyers on the board that could better describe what is going on and whether the Pollin estate can somehow wrangle themselves out of the agreement from 1999.

Here is Mr. Leonsis' take on the WaPo story today.

www.tedstake.com/2010/01/28/an-update-on-todays-news/

[kchoya]

Jan 28, 2010 16:19:02 GMT -5 mit0313 said:

Thought I'd get a thread going with the news today that the Pollin estate is trying to prolong the sale process of their share of the Wizards/Verizon Center/Local Ticketmaster Franchise. I am sure there are lawyers on the board that could better describe what is going on and whether the Pollin estate can somehow wrangle themselves out of the agreement from 1999.

Here is Mr. Leonsis' take on the WaPo story today.

www.tedstake.com/2010/01/28/an-update-on-todays-news/

I don't think any lawyers here can describe what's going any better than Leonsis did. It all comes down to the wording of the contract/memorandum/whatever. However, the appraisal process (they each pick one, then it goes to a third appraiser) is a very common setup in all sorts of real estate and other deals.

[The Stig]

Ted's description of the agreement sounds basically the same as what the WaPo reported before this most recent memo. It sounds like he's trying to play by the rules, while the Pollin estate want to sell the team on the open market.

Ted buying the Wizards and the Verizon Center would be great for DC and for Georgetown. As a hockey fan who arrived in DC in 2005, I can't say enough good things about Ted's ownership of the Capitals. He's committed to providing fans with a great product. Go to a Wizards game, then go to a Caps game, and you'll see a huge difference in terms of the quality of product the fans get.

From a Georgetown perspective, having an alum and a GU board member owning the Verizon Center might help us get a more favorable deal to play our games there.

[mit0313]

Yes maybe it is not the same today, but I seem to recall being told a couple years ago we were paying $50k a game to rent the place.

[SFHoya99]

If Pollin's reputation is anything like he was actually like -- a very honorable and very loyal man -- I imagine Leonsis is in the right here.

It wouldn't be the first time money-grubbing heirs who have done nothing for themselves feel they can do what they want to get even more.

Yes, I'm biased, but I thought it was pretty clear back even in 1999 that the agreement was so that Leonsis would be the next owner of the team. If the intent had been for Leonsis to only have the right to match the highest market offer, there would have been no need to mention appraisals at all in the agreement, it seems to me.

[jgalt]

Jan 28, 2010 19:48:23 GMT -5 SFHoya99 said:

If Pollin's reputation is anything like he was actually like -- a very honorable and very loyal man -- I imagine Leonsis is in the right here.

It wouldn't be the first time money-grubbing heirs who have done nothing for themselves feel they can do what they want to get even more.

Yes, I'm biased, but I thought it was pretty clear back even in 1999 that the agreement was so that Leonsis would be the next owner of the team. If the intent had been for Leonsis to only have the right to match the highest market offer, there would have been no need to mention appraisals at all in the agreement, it seems to me.

I agree. From what i have read (and it is a lot since i am a huge caps fan) I would have to believe Abe would be pretty Editeded that Ted doesnt already have the team under his control.

Additionally, if the team goes to open market, who every buys it will likely over bid, but even worse will not have the support of the city. Ted is so well liked in the city because of what he has done with the caps that an outside owner would likely be portrayed like a Dan Snyder figure. If/when Ted buys the team he could probably just say to his caps fans "go to wizards games!" and most of them would gladly snatch up tickets (of course i am an exaggerating here, but many of the new bandwagon fans follow Ted's words mindlessly).

Also, Ted would have the patients to rebuild the Wizards like he did with the Caps. He has his success story and with the acquisition of the Building would then have income from the Caps. This would give him working capital and the financial patients to slowly rebuild (and hopefully rename/rebrand) the Zards. If Ted can do with the Wiz what he has done with the Caps then maybe DC wont be sports suck that it is now.

[mit0313]

I'd also add that what potential owner/ownership group will want to take all the time and effort to construct a bid, raise the funding, and make an offer only to know in the end Leonsis can snatch it right from them?

[kchoya]

Jan 29, 2010 13:39:26 GMT -5 jgalt said:

Jan 28, 2010 19:48:23 GMT -5 SFHoya99 said:

If Pollin's reputation is anything like he was actually like -- a very honorable and very loyal man -- I imagine Leonsis is in the right here.

It wouldn't be the first time money-grubbing heirs who have done nothing for themselves feel they can do what they want to get even more.

Yes, I'm biased, but I thought it was pretty clear back even in 1999 that the agreement was so that Leonsis would be the next owner of the team. If the intent had been for Leonsis to only have the right to match the highest market offer, there would have been no need to mention appraisals at all in the agreement, it seems to me.

Also, Ted would have the patients to rebuild the Wizards like he did with the Caps.

I agree. You could probably pick a group of twelve random people from the Washington Hospital Center and they'd do better than the Wizards as currently constituted.

;D

[jgalt]

Jan 29, 2010 13:48:24 GMT -5 kchoya said:

I agree. You could probably pick a group of twelve random people from the Washington Hospital Center and they'd do better than the Wizards as currently constituted.

;D

Touche, spelling has not always been my strong point ;D

[PhillyHoya]

When Ted was introduced during the game today, several of us in 118 were chanting "Buy the Wizards". Hope he heard heh.

[mit0313]

Looks like the biggest hurdle has been overcome: purchase price

www.washingtonpost.com/wp-dyn/content/article/2010/03/25/AR2010032502318.html?hpid=topnews

With that value it looks like Lincoln won't have to put up too much cash which is nice for them. Would be nice if they were in control by June 1.

[jgalt]

An interesting point was brought up by the guy on Washington Post live tonight: The Pollin family was very very loyal to some people in the Wizards organization; Leonsis will likely and justifiably want to blow up the organization to build from the bottom; how these two philosophies mesh will be important to the success of the Wizards in the near future.

[kchoya]

Mar 25, 2010 20:04:51 GMT -5 jgalt said:

An interesting point was brought up by the guy on Washington Post live tonight: The Pollin family was very very loyal to some people in the Wizards organization; Leonsis will likely and justifiably want to blow up the organization to build from the bottom; how these two philosophies mesh will be important to the success of the Wizards in the near future.

Yes, hopefully he does blow it up so the team can be successful.

[mit0313]

100% chance that he brings his own people in. He might keep a Pollin family member around as a good faith gesture but new ownership brings in their people.